Petrominerales, Ecopetrol and Pacific Rubiales Energy Corporation have revealed that Oleoducto Bicentenario has secured loan worth approximately $1.2bn for the proposed Bicentenario oil pipeline project.
A syndicate of ten Colombian Banks has offered the loan to Bicentenario, a special-purpose vehicle formed to build and operate the oil pipeline.
Bicentenario intends to use the loan proceeds to complete the first phase of the project, which is expected to cost $1.03bn.
The entire Bicentenario oil pipeline, expected to be built at a cost of $4.2bn, will involve building a 960km private-use oil pipeline between Casanare and Coveñas.
The project will be the largest of its kind in Colombia and will be undertaken in four phases.
The first phase, which will connect the Araguaney Station in Casanare to the Banadía Station in Arauca, will join the Los Llanos prolific oil basin to the Cano Limón Colombian oil transportation system and the port at Coveñas.
When completed, in the fourth quarter of 2012, the transportation capacity on the pipeline will be expanded by 120,000 barrels per day with a final capacity targeted at 450,000 barrels per day.
Ecopetrol owns a 55.97% stake in Bicentenario, while Pacific Rubiales Energy and Petrominerales hold 32.88% and 9.65% interests respectively.
Colombian firms Canacol Energy, C&C Energia and Vetra E&P each hold a 0.5% interest in the company.